My main objective with bitcoin is to buy and hold until I finally retire. I have no interest in trading whatsoever.
Why would I need a coldwallet if that is the sole reason I buy crypto? I was thinking about creating a private + public keys using a flashdrive (tails + electrum), than engraving the seed words in metallic plates and thats it. When (if) I retire, I would just buy another flashdrive or something and input the key in it, then finally sell.
I don't see the point in having a hardware piece just to put it inside a safe, if what really protect my coins are the seed words.
If my objective is to hold until I retire, why would I need a coldwallet?
byu/Poponildo inBitcoinBeginners
Posted by Poponildo
2 Comments
You’re not wrong, the seed words are what really matter, not the device.
The reason people still use a hardware wallet isn’t to “store” Bitcoin, it’s to make the risky moments safer. The danger usually comes years later, when you finally need to move or sell and end up typing a seed into some random computer. That’s how people lose coins.
What you’re describing can work if done perfectly, but a hardware wallet just makes it simpler and lower stress when that day comes. It’s less about trading and more about not screwing things up when it actually counts.
>Why would I need a coldwallet
You don’t technically need one. You could create a modern paper wallet instead for free with 12 seed words and one or multiple deposit addresses.
Some advice –
1) With your hardware wallet you technically have the seed within and your backup . with your single metal plate that is less secure if you lose it so perhaps have 2 locations of a paper and metal backups
2) Electrum technically doesn’t use BIP39 so on your backup notate “electrum seed”
3) You may want to export the xpub/zpub into a watch only wallet so you can generate unique addresses offline for better privacy and security since you technically should always use one UTXO per address
4) Very important to use a good version of Tails, with a hardware wallet you reduce the chance of malware creating your seed . Perhaps if you are paranoid make a small deposit of a couple thousand usd of btc and wait a few days to see if it is swept to insure you didn’t download malware
5) After you are done with the linux live usb , make sure you format (full , not quick ) the USB